A credit card is part of system of payments named after all the small plastic card issued by the banks and credit unions to the users of the system. It is a card enable its holder to buy goods and services based on the holder's promise to pay for these goods and services. Nowadays, credit cards has been widely used among all the people especially those undergraduates due to they can buy anything they want, even though without having cash in their hand. Therefore, it may causes them to the sea of debts. There are several reasons that causes credit cards debts.
Poor money management is one of the top reasons why people accumulated lots of debt. Due to the poor money management, people are not aware to conduct a monthly spending plan and do not keep track on the monthly bills or receipt to record how much money they have spent. Without keeping the bills or receipts, people will never realize how much they have spent on the products that leads them to raised a debt in one month. With the used of the credit cards, people will like to keep on spending by using the future money without perceive that they are unable to pay back the debts.
Besides that, unemployment is also one of the causes of credit card debts. Due to the economic crisis, many people lost their job and unable to maintain their living expenses. Therefore, people used the credit cards in order to cover their future living expenses. This may leads to a rise in debt when expenses are not to cut down to cover the reduction in income.
Now, lets us discuss on the ways to prevent credit card debts. The first steps is to have a financial planning. We need to a clear budget plan and it is a need to keep all the receipts or bills after making some purchase in order to keep track on how much you have spent on that month. This may help us to perceive and we will not overspend and prevent from the debts.
Secondly, people who is using the credit cards should learn how to have a better self control and discipline in order to prevent from buying those unnecessary things, people can control themselves by limit their credit cards amount in order to stop them when they have spend more than their budget.
Finally, the most obvious solution is to get a debit cards.Modern debit cards will work in any machine that accept credit cards, and they are accepted for online shopping as well. Naturally, if we use a debit cards we cannot spend more money than we have, that's why they are superb tools when we're trying to get rid of credit card debts.
In the conclusions, credit cards should be used for emergencies only, unless you plan on paying the entire balance off immediately.Never pay the minimum amount due unless you truly can't afford any more.
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week 5
Poor money management is one of the top reasons why people accumulated lots of debt. Due to the poor money management, people are not aware to conduct a monthly spending plan and do not keep track on the monthly bills or receipt to record how much money they have spent. Without keeping the bills or receipts, people will never realize how much they have spent on the products that leads them to raised a debt in one month. With the used of the credit cards, people will like to keep on spending by using the future money without perceive that they are unable to pay back the debts.
Besides that, unemployment is also one of the causes of credit card debts. Due to the economic crisis, many people lost their job and unable to maintain their living expenses. Therefore, people used the credit cards in order to cover their future living expenses. This may leads to a rise in debt when expenses are not to cut down to cover the reduction in income.
Now, lets us discuss on the ways to prevent credit card debts. The first steps is to have a financial planning. We need to a clear budget plan and it is a need to keep all the receipts or bills after making some purchase in order to keep track on how much you have spent on that month. This may help us to perceive and we will not overspend and prevent from the debts.
Secondly, people who is using the credit cards should learn how to have a better self control and discipline in order to prevent from buying those unnecessary things, people can control themselves by limit their credit cards amount in order to stop them when they have spend more than their budget.
Finally, the most obvious solution is to get a debit cards.Modern debit cards will work in any machine that accept credit cards, and they are accepted for online shopping as well. Naturally, if we use a debit cards we cannot spend more money than we have, that's why they are superb tools when we're trying to get rid of credit card debts.
In the conclusions, credit cards should be used for emergencies only, unless you plan on paying the entire balance off immediately.Never pay the minimum amount due unless you truly can't afford any more.
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